IRS Section 6050W Compliance, Form 1099-K

Jan. 5, 2011 - PRLog -- Section 6050W (http://www.irs.gov/pub/irs-drop/n-09-19.pdf) of the Internal Revenue Code requires information returns to be made for each calendar year by merchant acquiring entities and third party settlement organizations with respect to payments made in settlement of payment card transactions and third party payment network transactions occurring in that calendar year. This requirement to make information returns applies to returns for calendar years beginning after December 31, 2010.

Under new section 6050W, any payment settlement entity making payment to a participating payee in settlement of reportable payment transactions must make a return for each calendar year to be filed with the Service, and furnish a statement to the participating payee, setting forth the gross amount of such reportable payment transactions, as well as the name, address, and taxpayer identification number (TIN) of the participating payees.

2011 Form 1099-K (http://www.irs.gov/pub/irs-dft/f1099k--dft.pdf), Merchant Card and Third-Party Payments, is a new information return that payment settlement entities will use to report the gross amount of merchant card or third-party payments.

The 2011 release of Account Ability will include Form 1099-K and comply with IRS Sec 6050W.

Download the free demonstration version of Account Ability at either http://www.idmsinc.com or http://www.accountabilitysoftware.com

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Account Ability prepares information returns (1098, 1099, 3921, 3922, 5498, W2G) and annual wage reports (W2, W2C) electronically, on laser, inkjet, and generic dot matrix printers. IRS Bulk TIN Matching is included at no extra charge.